Shareholder Class Action Filed Against Penn Treaty American Corp. By The Law Firm Of Schiffrin & Barroway, LLP

Apr 18, 2001, 01:00 ET from Schiffrin & Barroway, LLP

    BALA CYNWYD, Pa., April 18 /PRNewswire/ -- The following statement was
 issued today by the law firm of Schiffrin & Barroway, LLP:
     Notice is hereby given that a class action lawsuit was filed in the United
 States District Court for the Eastern District of Pennsylvania on behalf of
 all purchasers of the common stock of Penn Treaty American Corp. (NYSE:   PTA)
 from November 7, 2000 through March 29, 2001, inclusive (the "Class Period").
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests with respect to these matters, please
 contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Robert B. Weiser,
 Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
 info@sbclasslaw.com.
     The complaint charges Penn Treaty American Corp. and certain of its
 officers and directors with issuing false and misleading statements concerning
 its business and financial condition.  Specifically, the complaint alleges
 that defendants issued statements reporting that the Company was experiencing
 a tremendous growth in sales throughout the Class Period.  Furthermore,
 defendants repeatedly stated that the growth was not jeopardizing the
 Company's health, and that it had adequate reserve for the increased level of
 business.
     In fact, the Company continued to sell so many policies that its reserves
 were at risk.  Instead of disclosing this information, the defendants choose
 to conceal it from the market.  Defendants' scheme ended on March 30, 2001,
 when Penn Treaty was forced to announce that, among other things, its reserves
 had sunk so far below the statutory minimum that it faced possible liquidation
 and that its independent accountants were questioning the company's ability to
 remain a viable entity.  Following this announcement, the Company's common
 stock price fell 42% in one day.
     Plaintiff seeks to recover damages on behalf of class members and is
 represented by the law firm of Schiffrin & Barroway, LLP, who has significant
 experience and expertise prosecuting class actions on behalf of investors and
 shareholders.  For more information on Schiffrin & Barroway, please visit
 www.sbclasslaw.com.
     If you are a member of the class described above, you may, not later than
 June 16, 2001, move the Court to serve as lead plaintiff of the class, if you
 so choose.  In order to serve as lead plaintiff, however, you must meet
 certain legal requirements.
 
      CONTACT:  Schiffrin & Barroway, LLP
                Marc A. Topaz, Esq.
                Robert B. Weiser, Esq.
                Three Bala Plaza East, Suite 400, Bala Cynwyd, PA  19004
                888-299-7706 (toll free) or 1-610-667-7706
                Or by e-mail at info@sbclasslaw.com
 
 

SOURCE Schiffrin & Barroway, LLP
    BALA CYNWYD, Pa., April 18 /PRNewswire/ -- The following statement was
 issued today by the law firm of Schiffrin & Barroway, LLP:
     Notice is hereby given that a class action lawsuit was filed in the United
 States District Court for the Eastern District of Pennsylvania on behalf of
 all purchasers of the common stock of Penn Treaty American Corp. (NYSE:   PTA)
 from November 7, 2000 through March 29, 2001, inclusive (the "Class Period").
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests with respect to these matters, please
 contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Robert B. Weiser,
 Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
 info@sbclasslaw.com.
     The complaint charges Penn Treaty American Corp. and certain of its
 officers and directors with issuing false and misleading statements concerning
 its business and financial condition.  Specifically, the complaint alleges
 that defendants issued statements reporting that the Company was experiencing
 a tremendous growth in sales throughout the Class Period.  Furthermore,
 defendants repeatedly stated that the growth was not jeopardizing the
 Company's health, and that it had adequate reserve for the increased level of
 business.
     In fact, the Company continued to sell so many policies that its reserves
 were at risk.  Instead of disclosing this information, the defendants choose
 to conceal it from the market.  Defendants' scheme ended on March 30, 2001,
 when Penn Treaty was forced to announce that, among other things, its reserves
 had sunk so far below the statutory minimum that it faced possible liquidation
 and that its independent accountants were questioning the company's ability to
 remain a viable entity.  Following this announcement, the Company's common
 stock price fell 42% in one day.
     Plaintiff seeks to recover damages on behalf of class members and is
 represented by the law firm of Schiffrin & Barroway, LLP, who has significant
 experience and expertise prosecuting class actions on behalf of investors and
 shareholders.  For more information on Schiffrin & Barroway, please visit
 www.sbclasslaw.com.
     If you are a member of the class described above, you may, not later than
 June 16, 2001, move the Court to serve as lead plaintiff of the class, if you
 so choose.  In order to serve as lead plaintiff, however, you must meet
 certain legal requirements.
 
      CONTACT:  Schiffrin & Barroway, LLP
                Marc A. Topaz, Esq.
                Robert B. Weiser, Esq.
                Three Bala Plaza East, Suite 400, Bala Cynwyd, PA  19004
                888-299-7706 (toll free) or 1-610-667-7706
                Or by e-mail at info@sbclasslaw.com
 
 SOURCE  Schiffrin & Barroway, LLP